Who Needs Bitcoin (Hardware Support Required for Bitcoin)

Who needs Bitcoin, and who does Bitcoin need? What is cryptocurrency, and how does it impact people’s daily lives?

Bitcoin is a new technology that is considered disruptive. Its emergence will benefit many industries, including finance, media, and gaming. In most cases, it serves as a means of value storage in decentralized networks. Bitcoin can provide support for anyone, but it may also have significant impacts on other users.

As the Bitcoin network becomes more decentralized, more institutional investors have started investing in cryptocurrency assets or certain parts of its ecosystem. These investors hope that their companies can utilize the potential of this technology to improve profitability and reduce transaction costs. Bitcoin is becoming a mainstream payment tool. It is currently in the early adoption stage but has not yet reached the security and reliability requirements needed for maturity.

However, Bitcoin is still attractive compared to traditional bank accounts. By using it, people no longer need cash or funds stored in exchanges; instead, they can protect themselves from potential hacker attacks and other risks by holding Bitcoin. Due to its anonymity, Bitcoin is currently safer and more accessible than ever before.

To better understand this, let’s look at the current market situation and why it is important to pay attention to the cryptocurrency market.

This article was originally published on ambcrypto and compiled by Blockchain Knights. The English copyright belongs to the original author, and please contact the editor for Chinese reprint.

Hardware Support Required for Bitcoin

Does Bitcoin require hardware support? Nodes running on the Bitcoin network function differently from other distributed ledger technologies.

To make this service more efficient and scalable, there must be sufficient funds for maintenance, upgrades, and usage. These devices are connected to the blockchain through software drivers like CPUs or GPUs.

Therefore, they can serve as a separate data source stored off-chain and provide complete services. As they rely on computing power, they will be composed of computers. So, unless necessary, they can only be used for verifying transactions and processing operations. However, without the support of miners, disproportionate network failures may occur.

When it comes to cryptocurrency assets, we usually say that Bitcoin is a very complex process, but it is created in some way. Its purpose is not to decentralize but to achieve true value transfer.

For example, if you want to send a small payment, the first thing you need to do is confirm that each fund comes from your wallet, and secondly, you can determine who is receiving this digit. Then, once the payment is received, it is immediately accepted. However, this does not mean that all participants want the same information (because they already know how to buy it).

Of course, there are many factors to consider, including custody and smart contracts. One of them is security. Security is the most fundamental thing and should be given attention. Although some people consider cryptocurrency as a good investment, security cannot be guaranteed in certain aspects.

In addition, the beliefs of many cryptocurrency enthusiasts suggest that this perspective will also change over time. According to Chainalysis research, about 70% of people believe that Bitcoin’s hash rate is much higher now than before. In contrast, most cryptocurrency companies in the past decade have focused only on ensuring the security of their networks rather than increasing the block size and the time required for block space.

Although the price of Bitcoin has recently risen, many users still hold an optimistic view of the long-term prospects of this field, especially those who are willing to prepare for upcoming inflation. For ordinary investors, the use cases of Bitcoin far exceed their expectations, especially for those who own a large amount of cryptocurrency.

Bitcoin is currently undergoing a major adjustment, which may be an important indicator for institutions to adopt Bitcoin, from the peak on January 1, 2020, to the new all-time high in mid-December.

During the first quarter of 2021, there was more Bitcoin mining activity globally, with over 100,000 new BTC being mined every day since 2017, but these new BTC only account for less than 5% of the entire supply. This trend seems to have resulted in a significant waste of energy, as people have to spend significant resources to acquire the most suitable product for them.